PRINTER'S NO. 1832
No. 1458 Session of 2003
INTRODUCED BY VEON, WASHINGTON, GRUCELA, BEBKO-JONES, LEACH, JAMES, GERGELY, HARHAI, THOMAS, MELIO, WATERS, HORSEY, KIRKLAND, COHEN, MANDERINO, GOODMAN, MYERS AND DeWEESE, MAY 14, 2003
REFERRED TO COMMITTEE ON INSURANCE, MAY 14, 2003
AN ACT 1 Amending Title 75 (Vehicles) of the Pennsylvania Consolidated 2 Statutes, further providing for election of tort options in 3 financial responsibility. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Section 1705 heading and (a)(1), (2), (3), (4) 7 and (5), (b), (c), (d) and (e) of Title 75 of the Pennsylvania 8 Consolidated Statutes are amended to read: 9 § 1705. Election of [tort] right to sue options. 10 (a) Financial responsibility requirements.-- 11 (1) Each insurer, not less than 45 days prior to the 12 first renewal of a private passenger motor vehicle liability 13 insurance policy on and after July 1, 1990, shall notify in 14 writing each named insured of the availability of two 15 alternatives of full [tort] right to sue insurance and 16 limited [tort] right to sue insurance described in 17 subsections (c) and (d). The notice shall be a standardized
1 form adopted by the commissioner and shall include the 2 following language: 3 NOTICE TO NAMED INSUREDS 4 A. "Limited [Tort] Right to Sue" Option--The laws of the 5 Commonwealth of Pennsylvania give you the right to choose 6 a form of insurance that limits your right and the right 7 of resident relative members of your household to seek 8 financial compensation for injuries caused by other 9 drivers. Under this form of insurance, you and other 10 household [members] relatives covered under this policy 11 may seek recovery for all medical and other out-of-pocket 12 expenses, but not for pain and suffering or other 13 nonmonetary damages unless the injuries suffered fall 14 within the definition of "serious injury" as set forth in 15 the policy or unless one of several other exceptions 16 noted in the policy and enumerated in subsection (d) 17 applies. The annual premium for basic coverage as 18 required by law under this "limited [tort] right to sue" 19 option is $ . 20 Additional coverages under this option are available at 21 additional cost. A menu of available coverage and the 22 cost of each is listed in paragraph F. 23 B. "Full [Tort] Right to Sue" Option--The laws of the 24 Commonwealth of Pennsylvania also give you the right to 25 choose a form of insurance under which you maintain an 26 unrestricted right for you and the resident relative 27 members of your household to seek financial compensation 28 for injuries caused by other drivers. Under this form of 29 insurance, you and other household [members] relatives 30 covered under this policy may seek recovery for all 20030H1458B1832 - 2 -
1 medical and other out-of-pocket expenses and may also 2 seek financial compensation for pain and suffering and 3 other nonmonetary damages as a result of injuries caused 4 by other drivers. The annual premium for basic coverage 5 as required by law under this "full [tort] right to sue" 6 option is $ . 7 Additional coverages under this option are available at 8 additional cost. A menu of available coverage and the 9 cost of each is listed in paragraph F. 10 C. [You may contact your insurance agent, broker or 11 company to discuss the cost of other coverages.] While 12 paragraphs A and B above give you the cost comparison 13 between "limited right to sue" coverage and "full right 14 to sue" coverage and the menu of coverages in paragraph F 15 lists the other available coverages and the cost of each, 16 you may contact your attorney, insurance agent, broker or 17 company to discuss any questions you may have concerning 18 these coverages and their costs. 19 D. If you wish to choose the "limited [tort] right to 20 sue" option described in paragraph A[,] you must sign 21 this notice where indicated below and return it. If you 22 do not sign and return this notice, you will be 23 considered to have chosen the "full [tort] right to sue" 24 coverage as described in paragraph B and you will be 25 charged the "full [tort] right to sue" premium. In the 26 event the cost comparisons in paragraphs A and B are 27 incomplete, even if you sign for the "limited right to 28 sue" option under this section, you will be considered to 29 have chosen the "full right to sue" option. 30 I wish to choose the "limited [tort] right to sue" option 20030H1458B1832 - 3 -
1 described in paragraph A: 2 ......................... ........... 3 Named Insured Date 4 E. If you wish to choose the "full [tort] right to sue" 5 option described in paragraph B, you may sign this notice 6 where indicated below and return it. However, if you do 7 not sign and return this notice[,] or if the cost 8 comparisons in paragraphs A and B are incomplete you will 9 be considered to have chosen the "full [tort] right to 10 sue" coverage as described in paragraph B and you will be 11 charged the "full [tort] right to sue" premium. 12 I wish to choose the "full [tort] right to sue" option 13 described in paragraph B: 14 ......................... ........... 15 Named Insured Date 16 F. Menu of coverages available.--The laws of the 17 Commonwealth of Pennsylvania give you the right to choose 18 the form, type and amount of insurance you wish to 19 purchase. Insurance companies are required by law to make 20 available for purchase the various forms and types of 21 coverages listed and are required to inform you of the 22 cost of each type and amount. 23 They are as follows: 24 $25,000/ $50,000/ $100,000/ Extra- 25 $50,000 $100,000 $300,000 ordinary 26 Bodily Injury 27 Full Right to Sue 28 Limited Right to Sue 29 Uninsured/Underinsured 30 Full Right to Sue 20030H1458B1832 - 4 -
1 Limited Right to Sue 2 $10,000 $25,000 $100,000 Extra- 3 ordinary 4 Medical Benefits 5 Wage Loss Benefits 6 Property Damage Liability 7 Comprehensive 8 $250 Deductible 9 500 Deductible 10 1,000 Deductible 11 Collision 12 $250 Deductible 13 500 Deductible 14 1,000 Deductible 15 Rental Reimbursement 16 Accident Death Benefits 17 Funeral Benefits 18 Insurers may offer higher benefit levels than those 19 enumerated above as well as additional benefits. 20 Your signature on the "menu of coverages" evidences your 21 actual knowledge and understanding of the availability of 22 these benefits. If you have any questions or you do not 23 understand all of the various options available to you, 24 contact your attorney, agent, broker or insurance 25 company. 26 In the event that you do not sign and return this "menu 27 of coverages" or it does not completely list each 28 coverage available to you and enumerate the cost for 29 each, then you will be considered to have selected the 30 "full right to sue" option and will be deemed to have 20030H1458B1832 - 5 -
1 selected each coverage option at the amount of the 2 minimum offering unless otherwise provided by law. 3 ........................ .......... 4 Name Insured Date 5 (2) Insurers shall print the [above notice] tort option 6 notices under paragraph (1) containing both options on one 7 sheet in prominent type and place in a prominent location. 8 [Any person signing, or otherwise bound by, a document 9 containing such terms is bound by such election and is 10 precluded from claiming liability of any person based upon 11 being inadequately informed in making the election between 12 full tort or limited tort alternatives.] On a separate sheet 13 insurers shall print the "menu of coverages" in prominent 14 type and in a prominent location. Where there are two or more 15 named insureds on a policy, any named insured may make the 16 full or limited [tort] right to sue election provided for in 17 this section for all named insureds on the policy. 18 (3) If a named insured who receives [a] notice under 19 paragraph (1) does not indicate a choice within 20 days, the 20 insurer shall send a second notice. The second notice shall 21 be in a form identical to the first notice, except that it 22 shall be identified as a second and final notice. If a named 23 insured has not responded to either notice ten days prior to 24 the renewal date, the named insured and those he is empowered 25 by this section to bind by his choice are conclusively 26 presumed to have chosen the full [tort] right to sue 27 alternative. All notices required by this section shall 28 advise that if no [tort] right to sue election is made, the 29 named insured and those he is empowered to bind by his choice 20030H1458B1832 - 6 -
1 are conclusively presumed to have chosen the full [tort] 2 right to sue alternative. [Any person subject to the limited 3 tort option by virtue of this section shall be precluded from 4 claiming liability of any person based upon being 5 inadequately informed.] 6 (4) Each insurer, prior to the first issuance of a 7 private passenger motor vehicle liability insurance policy on 8 and after July 1, 1990, shall provide each applicant with the 9 [notice] notices required by paragraph (1). A policy may not 10 be issued until the applicant has been provided an 11 opportunity to elect a [tort] right to sue option. 12 (5) An owner of a currently registered private passenger 13 motor vehicle who does not have financial responsibility 14 shall be deemed to have chosen the limited [tort] right to 15 sue alternative if the owner is the driver of the uninsured 16 motor vehicle at the time of the owner's injury. 17 * * * 18 (b) Application of [tort] right to sue options.-- 19 (1) The [tort] right to sue option elected by a named 20 insured shall apply to all private passenger motor vehicle 21 policies of the named insured issued by the same insurer and 22 shall continue in force as to all subsequent renewal 23 policies, replacement policies and any other private 24 passenger motor vehicle policies under which the individual 25 is a named insured until the insurer, or its authorized 26 representative, receives a properly executed form electing 27 the other [tort] right to sue option. 28 (2) The [tort] right to sue option elected by a named 29 insured shall apply to all insureds under the private 30 passenger motor vehicle policy who are not named insureds 20030H1458B1832 - 7 -
1 under another private passenger motor vehicle policy. In the 2 case where more than one private passenger motor vehicle 3 policy is applicable to an insured and the policies have 4 conflicting [tort] right to sue options, the insured is bound 5 by the [tort] right to sue option of the policy associated 6 with the private passenger motor vehicle in which the insured 7 is an occupant at the time of the accident if he is an 8 insured on that policy and bound by the full [tort] right to 9 sue option otherwise. 10 (3) An individual who is not an owner of a currently 11 registered private passenger motor vehicle and who is not a 12 named insured or insured under any private passenger motor 13 vehicle policy shall not be precluded from maintaining an 14 action for noneconomic loss or economic loss sustained in a 15 motor vehicle accident [as the consequence of the fault of 16 another person pursuant to applicable tort law.] and is, 17 therefore, deemed to have selected the full right to sue 18 option. 19 (c) Full [tort] right to sue alternative.--Each person who 20 is bound by the full [tort] right to sue election remains 21 eligible to seek compensation for noneconomic loss claimed and 22 economic loss sustained in a motor vehicle accident as the 23 consequence of the fault of another person pursuant to 24 applicable tort law. 25 (d) Limited [tort] right to sue alternative.--Each person 26 who elects the limited [tort] right to sue alternative remains 27 eligible to seek compensation for economic loss sustained in a 28 motor vehicle accident as the consequence of the fault of 29 another person pursuant to applicable tort law. Unless the 30 injury sustained is a serious injury, each person who is bound 20030H1458B1832 - 8 -
1 by the limited [tort] right to sue election shall be precluded 2 from maintaining an action for any noneconomic loss, except 3 that: 4 (1) An individual otherwise bound by the limited [tort] 5 right to sue election who sustains damages in a motor vehicle 6 accident as the consequence of the fault of another person 7 may recover damages as if the individual damaged had elected 8 the full [tort] right to sue alternative whenever the person 9 at fault: 10 (i) is convicted or accepts Accelerated 11 Rehabilitative Disposition (ARD) for driving under the 12 influence of alcohol or a controlled substance in that 13 accident or has a blood alcohol reading of more than .08; 14 (ii) is operating a motor vehicle registered in 15 another state; 16 (iii) intends to injure himself or another person, 17 provided that an individual does not intentionally injure 18 himself or another person merely because his act or 19 failure to act is intentional or done with his 20 realization that it creates a grave risk of causing 21 injury or the act or omission causing the injury is for 22 the purpose of averting bodily harm to himself or another 23 person; or 24 (iv) has not maintained financial responsibility as 25 required by this chapter, provided that nothing in this 26 paragraph shall affect the limitation of section 27 1731(d)(2) (relating to availability, scope and amount of 28 coverage). 29 (2) An individual otherwise bound by the limited [tort] 30 right to sue election shall retain full [tort] rights to sue 20030H1458B1832 - 9 -
1 with respect to claims against a person in the business of 2 designing, manufacturing, repairing, servicing or otherwise 3 maintaining motor vehicles arising out of a defect in such 4 motor vehicle which is caused by or not corrected by an act 5 or omission in the course of such business, other than a 6 defect in a motor vehicle which is operated by such business. 7 (3) An individual otherwise bound by the limited [tort] 8 right to sue election shall retain full [tort] rights to sue 9 if injured while an occupant of a motor vehicle other than a 10 private passenger motor vehicle. 11 (e) Nondiscrimination.--No insurer shall cancel, refuse to 12 write or refuse to renew a motor vehicle insurance policy based 13 on the [tort] right to sue option election of the named insured. 14 Any violation of this subsection shall be deemed a violation of 15 [the Automobile Insurance Policy Act] Article XX of the act of 16 May 17, 1921 (P.L.682, No.284), known as The Insurance Company 17 Law of 1921. 18 * * * 19 Section 2. This act shall take effect in 60 days. D3L75VDL/20030H1458B1832 - 10 -